Buyer's guide

The most important decision when it comes to choosing a new house is to choose the right property, namely the one which best meets your needs and wishes, and which has the best quality-price ratio.

Some of the most relevant criteria when it comes to choosing a property are:

• Position and setting: properties located in the centre of a town or, for example, on a golf resort or close to the sea are those with values most likely to rise in the future.
• Type of property: apartment, penthouse, town house, semi-detached or detached house: there are countless options according to your needs and budget.
  Orientation and location of the property within the urbanization.
• Choose between a new or second-hand build, depending on the degree of urgency involved in moving, as well as the budget, since newly-built properties usually cost less.
• Area and internal layout of the property: number of bedrooms, sun terraces, potential for creating a storage area, garage, etc.
  Quality of materials used, finishing and state of preservation.
• Installation of natural gas and heating: important to check that any such installations meet legal requirements.

Además del precio en si de la vivienda, es importante saber que tendrá que hacer frente a los siguientes gastos:

SECOND-HAND PROPERTY

A check should be carried out to ensure that the property is in order with regard to the following:

Local Authority

• That the vendor is up-to-date in terms of paying the IBI (Annual Property Tax) and other taxes. In the event of previously unpaid bills, the property may be impounded.
• That no future town plans exist which may affect the immediate vicinity of the property.

Registration of the property

• Request a Nota simple (Legal Certificate of Ownership) proving that the property is registered in the name of the vendor.
• That it is free of any charges, with no sequestration orders or mortgages, and that it is not being rented.

Community Administrator

• Check that the vendor is up-to-date with payments to the Community of Property Owners, since the property may be impounded in the event of payment defaults. A certificate may be requested verifying that payments have been made.

Companies supplying water, electricity and gas

• Obtain information about any outstanding payments.

Note: it may sometimes be more economical to defray the debts of the previous owner than to begin arranging a new registration.

NEW PROPERTY

The developer who builds the properties must provide the following data:

• Registration of the name or business name of the developer in the Corporate Register.
• Obtain work licence.
• First Occupancy or final qualifying Licence.
• Conditions of use and maintenance.
• Registration of the property in the Register of Newly-Built Properties.
• Guarantee of all sums paid on account. In the event of construction not being completed, the developer will have to return all amounts paid on account.
• Damage and latent defect insurance as referred to in the law.
• Total price, method of payment, detailed plans of the property.

When the property has been chosen, and its situation verified, several documents will have to be signed in order to implement its purchase, among which the most common are:

• Deposit document
• Purchase option (in the event of a rented property)
• Private sale and purchase document
• Notorised and Registered Deed of Title to Property as Entered in the Property Register

Deposit document:
Before the property comes into your hands you would normally deposit a sum of money on account with the aim of guaranteeing the right of purchase, this being a Deposit Contract. When the contract is signed, the vendor is obliged to hold the property back until the sale actually goes through.
Note: this sum will be forfeit should the sale not proceed.

Option to buy:

This document entails the retention of a property on behalf of the purchaser during the agreement period, so that if the purchase does not proceed during the time period and under the agreed conditions, the retention and price of the option are lost.
This document is usually signed where there is a Rental Agreement with Option to buy.

Private contract of sale:
This is a private contract between vendor and purchaser in which the property features and sale conditions are outlined.
This contract should include:

• Identification of the vendor and purchaser (Name, NIF or Fiscal Identification Number, residence,...)
• Property location, plans, extensions (garage, storage room,...).
• Total price and taxes.
• Built and net floor area.
• Delivery deadline.
• Reference number in the Registry and state of charges (mortgages, impounding(s),...)
• Form of financing and guarantee of any quantities paid on account.

Notarised Contract of sale and purchase:

• The sale contract should be effected in the presence of a public notary, and the property registered in the Property Register.
• The signing of the title deeds usually occurs when the property is handed over and the full sum paid for it.
• The agreed conditions in the contract are only amended if it is the express wish of both parties.
• The cost of the notary depends on the type of property and, should there be one, a mortgage.

Certain administrative steps need to be taken including:

• Opening of accounts with suppliers of water, electricity and telephone. The developer will already have done this but an account number will have to be allocated to arrange direct debiting with the service companies.
• Examination of the property for any defects. Small flaws are normal although the better the quality of the property, the fewer the flaws there should be. The list of defects should subsequently be handed to the developer for them to be rectified.
• Communication of personal details to the president of the Community of Owners if one is already duly constituted.
• Registering of property and title deeds with the Property Register (should your property have been purchased with a mortgage, the bank will bear the responsibility for carrying out these arrangements as well as the payment of any taxes).
• Informing the land registry office of the property purchase for any possible variations in the municipal real estate tax.